International Power plc : 532MW Expansion of Tihama Power Sites in Saudi Arabia

04/23/2012 | 03:39am US/Eastern

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23 April 2012

532MW Expansion of Tihama Power Sites in Saudi Arabia

23 April 2012 - GDF SUEZ and International Power (70%
owned by GDF SUEZ) are pleased to announce the expansion
of their Tihama power sites in Saudi Arabia following an
award from Saudi Aramco. Long-term Energy Conversion
Agreements (offtake contracts) through to 2026 have been
signed for this expansion. The expansion will take place
at three of the four existing sites and will generate
additional capacity of 532MW and 2,210GJ/h of steam.
Following the expansion, Tihama will have a total
capacity of 1,595MW and 8,112GJ/h of steam.

The ownership structure of the expansion is the same as
the existing Tihama project, which is 60% owned by
International Power and 40% by Saudi Oger. In 2003,
International Power and Saudi Oger were originally
awarded four 20-year Energy Conversion Agreements by
Saudi Aramco to develop, own and operate the four
cogeneration plants, which are located at Saudi Aramco's
gas and oil refineries.

The total project cost for the expansion is estimated to
be approximately US$430 million (326 million), which is
being funded by a mix of debt and equity in an 80:20
ratio. Full financial close of the project is anticipated
shortly. The expansion programme is expected to complete
by 2015.

Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said,
"This project demonstrates further strong growth of our
portfolio in the Middle East, and our ability to create
additional value from our existing asset base. Our global
expertise and skills in thermal power plants enabled us
to deliver a compelling offer to Saudi Aramco. In the
Gulf region, our Group is the leading independent power
and desalinated water producer."

Philip Cox, CEO of International Power, commented, "Saudi
Arabia is a key market for International Power in the
Middle East, with important projects supported by
long-term power purchase agreements and backed by very
high quality offtakers. We are delighted with our
continued strong relationship with Saudi Aramco and with
our increased presence in the country."

Notes to Editors

An exchange rate of 1: US$1.321 has been used in this
announcement.

IPR-GDF SUEZ Middle East, Turkey and Africa has two
existing power plants in Saudi Arabia. It owns 60% in
Tihama (1,063MW, 5,902 GJ/h of steam) and 20% in Marafiq
(2,741MW, 176 MIGD of desalinated water). It also owns
20% in Riyadh PP11 (1,729MW), which is currently under
construction.

About International Power

International Power plc is a leading independent
electricity generating company with 75,579MW gross
(43,288MW net) in operation and a significant programme
of 12,820MW gross (5,868MW net) projects under
construction as at 31 December 2011. International Power
is present in 30 countries across six regions worldwide.
Together with power generation, the Group is also active
in closely linked businesses including downstream LNG,
gas distribution, desalination and retail. International
Power is listed on the London Stock Exchange with ticker
symbol IPR. GDF SUEZ holds a 70% interest in
International Power plc. Company website: www.iprplc-gdfsuez.com

About GDF SUEZ

GDF SUEZ develops its businesses around a model based
on responsible growth to take up today's major energy and
environmental challenges: meeting energy needs, ensuring
the security of supply, combating climate change and
optimizing the use of resources. The Group provides
highly efficient and innovative solutions to individuals,
cities and businesses by relying on diversified
gas-supply sources, flexible and low-emission power
generation as well as unique expertise in four key
sectors: liquefied natural gas, energy efficiency
services, independent power production and environmental
services. GDF SUEZ employs 218,900 people worldwide and
achieved revenues of 90.7 billion in 2011. The Group is
listed on the Brussels, Luxembourg and Paris stock
exchanges and is represented in the main international
indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50,
Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI
Eurozone and ECPI Ethical Index EMU.